Mercury Systems Inc
mrcy.comWhat Do They Do?
Sells signal-processing components, computing modules and integrated electronic systems for defense contractors, government agencies and commercial aerospace makers.
10-K for FY2026, filed Aug 18, 2026As a leading manufacturer of essential components, modules and subsystems, we sell to the top U.S. and European defense prime contractors…View ↗
The Mercury Processing Platform is designed to meet the full range of requirements in compute-intensive, signal processing, image…View ↗
Components. Components represent the basic building blocks of an electronic system. They generally perform a single function such as…View ↗
How Do They Make Money?
Customers pay for products when they ship or for services when the work is completed. For development, production and service work billed over time, customers are charged as work progresses; cost-reimbursed contracts are paid periodically for allowable costs and part of the fee based on progress.
10-K for FY2026, filed Aug 18, 2026A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract’s transaction price…View ↗
Revenue recognized at a point in time generally relates to contracts that include a combination of components, modules and sub-assemblies…View ↗
The Company engages in contracts for development, production and service activities and recognizes revenue for performance obligations over…View ↗
For over time contracts, the Company typically leverages the input method, using a cost-to-cost measure of progress. The Company believes…View ↗
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10-K for FY2026, filed Aug 18, 2026
FY2026 revenue by product or service ↗
$983.6M
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10-K for FY2026, filed Aug 18, 2026
$983.6M ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Components
Mix
10-K for FY2026, filed Aug 18, 2026 |
21%
FY2023: 20%
|
Components, FY2026
$205.1M Sources
|
Mix |
|
Modules and Sub-assemblies
Mix
10-K for FY2026, filed Aug 18, 2026 |
29%
FY2023: 21%
|
Modules and Sub-assemblies, FY2026
$289.6M Sources
|
Mix |
|
Integrated Subsystems
Mix
10-K for FY2026, filed Aug 18, 2026 |
50%
FY2023: 59%
|
Integrated Subsystems, FY2026
$488.9M Sources
|
Mix |
Who Are Their Customers?
Defense prime contractors and government customers buy directly, alongside commercial aerospace manufacturers. Mercury also sells to defense contractors that supply government programs.
10-K for FY2026, filed Aug 18, 2026As a leading manufacturer of essential components, modules and subsystems, we sell to the top U.S. and European defense prime contractors…View ↗
We operate in a highly competitive marketplace characterized by rapidly changing technology, frequent product performance improvements…View ↗
Sales of our products and services, primarily as a subcontractor or team member with defense prime contractors, and in some cases directly…View ↗
10-K for FY2026, filed Aug 18, 2026
Fiscal Years Ended July 3, 2026 June 27, 2025 June 28, 2024 RTX Corporation 15 % 13 % 10 % Lockheed Martin Corporation 11 % 10 % 11 %…View ↗
Do Revenues Turn Into Profits?
Not on paper. It lost $29.7M in FY2026, but brought in more cash than it spent: $68.1M of free cash flow.
10-K for FY2026, filed Aug 18, 2026
$280KView ↗
10-K for FY2026, filed Aug 18, 2026
−$29.7MView ↗
10-K for FY2026, filed Aug 18, 2026
$68.1MView ↗
How Are They Changing?
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Sep 16, 2026
CEO William L. Ballhaus’s employment agreement was extended
The agreement’s initial term now runs to August 15, 2030; the company also reaffirmed its financial guidance.
Sources
8-K, filed Sep 16, 2026
On September 15, 2026, the independent directors on the Board of Directors of Mercury Systems, Inc. (the “Company”), upon the…View ↗
Flat. Revenue was $983.6M in FY2026, about the same as the $988.2M of FY2022.
More emphasis on integrated solutions
The older report described expanding pre-integrated subsystems and offering products and solutions. The latest report explicitly separates product businesses from a solutions business that works directly with customers on mission-specific capabilities.
10-K for FY2023, filed Aug 15, 2023 10-K for FY2026, filed Aug 18, 2026First, transition to pre-integrated subsystems: Mercury has expanded capabilities, particularly in integrated subsystems related to defense…View ↗
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